Boston officials are reportedly weighing the concept of creating government-owned grocery stores to support residents struggling with the rising costs of food.
City Council President Ruthzee Louijeune and Councilor Liz Breadon have requested a hearing to explore the idea — emphasizing it was not inspired by a similar proposal from New York City Democratic socialist mayoral candidate Zohran Mamdani, local news outlet Boston 25 News reported.
“The role of government is to step in when the market is failing our residents,” Louijeune told Boston 25 News. “The idea of government-sponsored government-subsidized grocers is not a novel idea.”
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Louijeune pointed to examples of similar grocery initiatives in Madison, Wisconsin, and Atlanta, Georgia, Boston 25 News reported.
“There’s a certain level of urgency because of a federal policy that’s cutting SNAP benefits,” Breadon told Boston 25 News. “Those of us who don’t have any food insecurity sometimes forget the struggles that ordinary working families may have.”
An estimated 37% of Massachusetts households faced food insecurity this year — nearly double the 19% reported in 2019, according to Boston 25 News, citing a report from the Greater Boston Food Bank.
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However, one grocery industry expert argues that city-run stores could hurt existing businesses.
Peter Brennan, executive director of the New England Convenience Store and Energy Marketers Association, said that using taxpayer funds for city-run grocery stores would be “a job killer in our communities,” according to Boston 25 News.
“Our mom and pop stores operate on very thin profit margins as it is. They are constantly facing rising costs, stricter regulations, and relentless economic pressure,” Brennan told Boston 25 News. “The City of Boston should be doing more to support these small businesses that create jobs, support our communities, and provide healthy meals, goods and services to our neighborhoods. Supporting small businesses by cutting taxes and fees and creating programs to help businesses become self-sustaining is a much better use of tax dollars.”
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Several other city councilors have also reportedly added their names to the hearing order, which has been sent to committee for consideration. A hearing could take place before the end of the year, according to Boston 25 News.
Mamdani has championed a network of city-run grocery stores. His proposal would establish five publicly funded, rent- and tax-exempt locations across New York City, according to Boston 25 News.
“You don’t lower grocery bills by having government-run stores,” Ryan Bourne, a top economist at the libertarian leaning Cato Institute think tank, told Fox Business earlier this year. “Government-run entities have no market discipline — no need to earn profits, compete, or serve customers efficiently. That leads to bloated costs, empty shelves, and zero accountability.”
Ruthzee Louijeune, Liz Breadon and Peter Brennan did not immediately respond to FOX Business request for comment.
FOX Business’ Amanda Macias contributed to this report.
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